Stock Watch 12.14.11 ” Hey, You Get Screwed by Shelf’s”
Optionmania webinar part 2 ” Straddles” will be Thursday 12.15.11 at 4:30EST Register here
Most traders never learn that Wall Street is littered with criminals, cheaters and lying filth. If you are not skeptical enough you simply will never survive as a trader. It’s a sad statement but it’s the truth. Crappy companies ( especially biotech) love to pump up their stock prices with fancy PR’s and news releases just so they can pump up the stock price and do shelf offerings and dilutions.
This is scam 101 for stocks. This is an easy way for a company to raise funds but worse is screws long term share holders. This is why they are always done after hours or over the weekend. So the investors can wake up the next day and say WTH!!.
I mentioned this was a strong possibilityfor LNG to Lincoln Million Swing students last week. Mainly because LNG is trash and that is just what trash companies do. Most of us got short a few January option put contracts. Well, after hours LNG does a nice little shelf tanking the stock and our puts should pay nicely. As a trader you must be aware of these scam companies because this happens all the time and you either get screwed by it or profit from it. You choose.
Tuesday Trades $LNG +400 $JOE -100 $TSYS +10 $GMCR +300 $PCYC+160 $P -425 Total +445
Watchlist MAKO NTSP PCYC OCZ OWW YMI LIVE(F)